AI Takeaway
AVB delivered solid Q1 FY2026 results with revenue up 3.3% YoY to $770.3M, net income surging 37.7% to $325.7M, and EPS of $2.33, driven by strong operating margins above 67% and improved cash generation.
Revenue
$770.28M
++3.27% YoY
EPS (Basic)
$2.33
++40.36% YoY
Operating Income
$517.49M
++4.25% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 3.3% YoY from $745.9M to $770.3M in Q1 FY2026, reflecting continued demand for AVB's residential apartment communities and stable rental income growth across its portfolio.
Source: Source: 10-Q Income Statement
Net income jumped 37.7% YoY from $236.6M to $325.7M, a significantly faster pace than revenue growth, suggesting meaningful gains from asset dispositions, reduced impairments, or other below-the-line items contributing to profitability.
Source: Source: 10-Q Income Statement
Operating margin improved modestly from 66.6% to 67.2% YoY, demonstrating AVB's ability to control operating costs relative to revenue and maintain highly efficient property operations at scale.
Source: Source: 10-Q Income Statement & Key Ratios
2 more insights available
Upgrade to unlockLong-term debt increased 12.7% YoY to $9.36B, pushing the debt-to-equity ratio to approximately 0.91. In a higher-for-longer interest rate environment, refinancing this debt at elevated rates could pressure future earnings and cash flows. AVB's ability to service this debt depends on sustained rental income and occupancy levels.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.33 versus the $1.28 analyst consensus — a +81.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $770.28M | $745.88M | +3.27% |
Operating Income | $517.49M | $496.39M | +4.25% |
Net Income | $325.73M | $236.6M | +37.67% |
EPS (Basic) | $2.33 | $1.66 | +40.36% |
EPS (Diluted) | $2.33 | $1.66 | +40.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $22.13B | $21.22B | +4.30% |
Total Liabilities | $10.41B | $9.3B | +11.97% |
Stockholders' Equity | $11.49B | — | — |
Cash & Equivalents | $121.23M | $53.26M | +127.64% |
Long-Term Debt | $9.36B | $8.3B | +12.73% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $418.93M | $415.9M | +0.73% |
Investing Cash Flow | $-48.98M | $-427.87M | +88.55% |
Financing Cash Flow | $-431.94M | $-36.01M | -1099.61% |
Share Buybacks | $198.48M | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 67.2% | 66.6% | +0.63% |
Net Margin | 42.3% | — | — |
ROE | 2.8% | — | — |
ROA | 1.5% | — | — |
Debt to Equity | $0.906 | — | — |
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AVB reported Q1 FY2026 revenue of $770.3M, up 3.3% YoY, and net income of $325.7M, up 37.7% YoY. EPS came in at $2.33 versus $1.66 in the prior year period, a 40.4% increase, supported by strong operating margins of 67.2%.
AVB's net income surged 37.7% YoY to $325.7M despite revenue growing only 3.3%, suggesting that non-recurring items such as property dispositions or fair value gains likely contributed meaningfully beyond core rental income. Operating income grew at a more moderate 4.3%, confirming that below-the-line items drove the outsized net income gain.
Yes, AVB initiated $198.5M in share buybacks in Q1 FY2026, compared to zero in the same period last year. This contributed to a dramatic swing in financing cash flows to -$431.9M from -$36.0M in Q1 FY2025.
AVB's long-term debt rose 12.7% YoY to $9.36B as of Q1 FY2026, and total liabilities increased 12.0% to $10.4B. The debt-to-equity ratio stands at approximately 0.91, reflecting increased leverage used to fund growth and capital returns.
Key risks include rising long-term debt (up 12.7% to $9.36B) in a high interest rate environment, the potential non-recurrence of one-time gains that inflated net income by 37.7%, and limited free cash flow headroom after $198.5M in share buybacks. Low ROA of 1.47% and ROE of 2.83% also highlight the capital-intensive nature of AVB's business model.